A brother and sister who operate a construction company in Paramount, CA admit to commiting fraud and embezzlement resulting in a loss of more than $500,000 to the California State Compensation Insurance Fund.
Enforcement
U.S. Department of Labor and State Enforcement Partnerships Key
The denial of minimum wages, overtime compensation, family and medical leave, and unemployment and workplace safety protections are all potential consequences of the misclassification of workers as independent contractors. Costly lawsuits against employers who may be liable for unpaid overtime and minimum wages, as well as back pay, court costs and attorneys’ fees.
“The Department of Labor is entering into enforcement partnerships with state agencies for “information sharing and coordinated enforcement” in support of its Misclassification Initiative, according to its website.”
No Misclassification! 